Having trained and qualified in London, Kamal has gained significant exposure to servicing a broad range of clients and industries in different jurisdictions.

Kamal is a Registered Company Auditor and is experienced in providing audit and assurance services to publicly listed entities, international groups and not-for profits in a variety of industries. With a diverse portfolio of clients, Kamal is passionate about providing audit, assurance and advisory solutions that deliver forward thinking commercial, innovative and value add outcomes to help his clients unlock their potential and achieve their ambitions. Kamal advocates the use of smart technologies in the assurance service delivery so as to achieve a higher quality of output and allowing the team to focus on the objectives of an engagement.

His clients are from a diverse cross-section of industries and therefore his significant industry experience includes mining, technology, financial services, manufacturing, retail, hospitality and entertainment & media sectors.

Kamal’s experience includes:

• External audit and assurance services
• International Accounting Standards, Corporations Act and ASX Listing Rules interpretation and advice
• Accounting for complex transactions
• Financial reporting and financial statement preparation
• Corporate governance
• Risk advisory, systems and technical reviews
• Real estate & solicitor’s trust audits
• Internal audit & SOX
• CFO and outsourcing solutions

Kamal is a Partner of SW Audit and a Director of SW Accountants & Advisors Pty Ltd.

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I support and assist organisations to optimise and improve their operations and achieve business objectives. By evaluating and advising on decision-making processes, risk management practices, control mechanisms and governance procedures, I provide valuable insights and guidance while maintaining the highest standards of corporate governance and regulatory compliance.

Working with clients across a range of industries, including financial services, education, local government and government owned agencies, water authorities and other public and private sector organisations, my areas of expertise include:

• devising and executing outsourced internal audit programs
• crafting and assessing risk management frameworks
• conducting thorough investigations into fraud concerns and offering actionable recommendations for implementing effective fraud controls
• carrying out independent reviews on Anti-Money Laundering and Counter Terrorism Financing (AML/CTF) measures
• performing comprehensive payroll audits and evaluating compliance with Enterprise Agreements
• facilitating the development and review of Modern Slavery statements
• assessing general IT controls to ensure robust security measures, and
• evaluating controls and monitoring outsourced service providers to ensure seamless operations.

I am a member of the Institute of Internal Auditors in Australia, and a member of ISACA (Information Systems Audit and Control Association).

Laura Toscano is a Partner of SW Audit and a Director of SW Accountants & Advisors Pty Ltd.

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With the news regarding SkyCity, AUSTRAC has cited ‘systemic failures’ in the operator’s anti-money laundering and counter-terrorism financing (AML/CTF) programs, particularly regarding the failure to have a transaction monitoring program and to carry out appropriate ongoing customer due diligence, including on some very high-risk customers.

Australia’s thriving pub and club industry is not exempt from scrutiny. Electronic gaming machine operators, including pubs and clubs with electronic gaming machines (EGMs) are required to actively mitigate and manage their money laundering and terrorism financing (ML/TF) risks. Business with entitlement to operate 15 or less EGMs may be exempt from some obligations, however they must still enrol with AUSTRAC and report suspicious matters.

AML/CTF requirements for gaming machines operators

Pubs and clubs with EGMs should ensure they have/do the following:

• Complete a risk assessment to identify money laundering and terrorism financing risks your business faces and tailor your AML/CTF program to the business.
• Collect and verify ‘know you customer’ (KYC) information.
• Have a transaction monitoring program.
• Have ongoing customer due diligence and carry out additional checks on higher risk or suspicious customers.
• Report suspicious matters to AUSTRAC e.g. if you suspect a person is linked to crime or a customer is not who they claim to be. Low reporting compared to peers may indicated an ineffective AML/CTF program.
• Do not tell customers that you have reported them in a suspicious matter report (SMR).
• Maintain accurate records of transactions e.g. a cheque register of payouts.
• Have processes so that staff working on the gaming floor can help to identify and report suspicious behaviour.
• Have an employee due diligence program.
• Submit annual compliance reports to AUSTRAC.
• Notify AUSTRAC of any changes such as a new compliance officer or updated contact information.
• Undertake regular independent reviews of Part A of your AML/CTF program.

How can SW help?

Our highly experienced team works closely with organisations across multiple industries, including the tourism and hospitality sectors, to ensure their AML/CTF programs are compliant  and appropriate to the needs of the business. We can review your current programs and processes, advise where the gaps are, or review your  compliance with AML/CTF requirements.

Reach out to our experts for an obligation free discussion about your current program, details about how we can help with a review of your AML/CTF program and provide tailored recommendations.

Contacts

Laura Toscano

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Concern for the security of information assets following the recent cyber incident at Medibank has prompted the Australian Prudential Regulation Authority (APRA) to step up its supervision of APRA-regulated entities for compliance with the Information Security Standard CPS 234.

Medibank confirmed that criminals claim to have stolen 200GB of data including names, dates of birth, Medicare numbers and claims data with codes relating to diagnosis and procedures. APRA’s UpGuard team reported in 2022 that the majority of data breaches ‘are the result of poorly secured software development practices’.

Fundamental questions for Boards of regulated entities include:

Do you know what data you are holding?

Do you know where it is?

How do you know it is safe?

And do you need to retain it?

APRA compliance recommendations

APRA recommends that regulated entities should undertake systemic testing and assurance at least annually to evaluate the effectiveness of their controls, including those managed by related parties and third parties.

To ensure that regulated entities are taking appropriate measures to protect their information assets, APRA has outlined specific steps that should be taken to comply with CPS 234. This includes:

• clearly defining information security-related roles and responsibilities
• maintaining an information security capability commensurate with the size and extent of threats
• implementing controls to protect information assets, and
• having mechanisms in place to detect, escalate and respond to information security incidents.

In the event of a material information security incident, entities are required to notify APRA no later than 72 hours.

How SW can help

As an increasing number of major cyber attacks become known, the importance of your information security systems and processes are paramount to ensure sensitive information assets are protected appropriately.

Our experienced experts have undertaken annual audits of these systems and processes across information security, compliance, risk management, and internal audit services. Working closely with clients to understand their business, security needs and particular risks, we conduct a full review with clear recommendations to ensure proactive steps are in place to protect the business and its assets.

We recommend best practice plans for CPS 234 and guide clients to implement information security assessments to ensure your cyber resilience.

Our support can include:

• A gap analysis of current practices against CPS 234
• Review of information security practices and third-party security assessments
• Independent security controls testing

Reach out to Laura Toscano or your Key Contacts here for an obligation-free discussion to find out how we can assist with your testing and assurance program.

Contributors

Laura Toscano

The post Medibank cyber attack prompts increased APRA supervision appeared first on SW Accountants & Advisors.

Our teams work deeply in each sector, so have an innate understanding of key risks, pressures from key stakeholders, changing legislation requirements, budgeting and finance constraints and emerging issues that require closer scrutiny.

We will always strive to foster a high level of engagement and communication between our core team and your internal audit and risk team. We aim to become an extension of your team rather than seen as an external provider.

We seek to understand your broader strategic plan to ensure that our audits and advisory work underpins the drivers for your success.

With our experience in delivering internal audit services for a significant number of State and Local Government clients and the private sector, our partner-led teams provide:

• a fresh perspective with a focus on continuous improvement and innovation to enhance your ability to deliver on your important public purpose and strategic agenda
• an insight into better practices from working with our diverse range of clients from different industry sectors
• enhanced data analytics to provide you with unique insights into how you can better utilise your data to improve decision making and strengthen your control framework.

To confidently approach the future, you also need to be aware of the risks you’re facing and implement strategies for the long-term rather than just focusing on the day to day. Our risk management advisors can work with you to identify and mitigate immediate risks, but can also work with you to conduct in-depth reviews of operational and business risks, leading to a clearer picture of where the company needs to focus to reach its strategic objectives.

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Our Assurance and Advisory team embraces technology, including cutting edge data analytics software and other bespoke IT tools to ensure a targeted and robust approach. With relationships at the centre of what we do, our team is committed to fully understand your business resulting in a tailored solution that best meets your needs.

• financial statement audits and reviews
• compliance audits
• controls assurance reports, including GS007
• corporate governance
• data analytics
• information technology risk and security
• internal audit
• review of financial reports
• risk management and Corporate Governance systems and controls reviews
• technical IFRS, accounting advice and training
• preparation of financial reports
• other assurance engagements.

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Prior to joining SW, Bessie was appointed the Chief Financial Officer for an ASX listed mining company which equipped her with extensive corporate governance and risk management experience.

Bessie has a wealth of professional experience and an extensive background in accounting, audit and management.

Bessie’s experience includes:

• Understanding both Australian accounting standards (AIFRs) and PRC GAAPs. Bessie has been qualified for Australia and China’s CPA for more than 10 years and 16 years respectively. She is familiar with PRC GAAPs and international financial reporting standards (IFRS)
• Knowledge in managing international companies. Bessie has led auditing and advisory engagements involving national and international companies.
• Understanding the financial impact and risk management perspectives of sales and purchase agreements
• Liaising with ASIC and responding to ASIC’s financial reporting surveillance inspection requirements

Bessie is a Partner of SW Audit and a Director of SW Accountants & Advisors Pty Ltd.

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In this fast-paced and technology-driven environment, retail businesses are compelled to prioritise flexibility in their operations to remain competitive and meet the ever-changing demands of the market. Whether it’s:

• adjusting inventory levels to align with shifting consumer trends
• optimising supply chain logistics to ensure timely deliveries, or,
• implementing innovative payment solutions to enhance the checkout experience, agility is key to staying ahead in the retail sector.

At SW, we understand the complexity of navigating this dynamic retail environment. Our experienced advisors work closely with retailers to address industry-specific challenges and provide tailored, strategic solutions that drive growth and performance.

Our services include:

• Strategic business planning to enhance operational efficiency
• Tax, audit, and risk advisory services tailored to retail challenges
• Expert guidance on navigating regulatory compliance and market disruption

We are committed to helping retailers not only meet immediate challenges but also build sustainable, future-focused business models.

Digital Transformation panel discussion

Post COVID-19, we were joined by 3 CEOs, including Ruslan Kogan from Kogan.com, to talk about their digital transformation journeys and opportunities of operating a digital first business. How social engineering techniques are utilised to prevent cyber-attacks was a popular topic.  

The post Retail & distribution appeared first on SW Accountants & Advisors.

Following engagement with bank representatives and industry experts, and analysis of transaction reports and partner agency intelligence reports, the four new ML/TF risk assessments offer insights into ML/TF activity in the subsectors and details of key risks each subsector is exposed to.

Major banks

The AUSTRAC risk assessment found that major banks face a high risk of ML as the subsector has a very large customer base with customers in high-risk categories, high exposure to cash, increases in remote service delivery channels and high exposure to foreign jurisdiction risk.

Red flags for cash-related ML risks include successive cash deposits at ATMs to the same account by different individuals, and use of the same mobile number for verifying deposits to multiple beneficiaries.

Other domestic banks

Other domestic banks are also exposed to individuals charged with money laundering-related offences, as well as members of serious and organised crime groups.

Common concerns include unexplained wealth, where the source of funds could not be determined and was inconsistent with the customer’s profile; multiple transactions when one transaction would suffice; and rapid or complex movement of funds through multiple accounts.

Foreign bank branches

The average value associated with money laundering in the foreign bank branches subsector is much higher than other banking subsectors.

Clients with complex company ownership structures and intricate onshore and offshore banking arrangements are assessed to be the highest risk for money laundering.

Risk factors include obscuring beneficial ownership or source of funds; receipt of high-value international transfer of funds, and rapid and complex movement of funds between multiple companies linked by shareholders; trusts and beneficial owners and companies moving funds to high-risk and tax secrecy jurisdictions.

Foreign bank branches often follow AML/CTF programs that are developed by the head office, and may not always be suitable for the Australian market.

Foreign subsidiary banks

Money-laundering for foreign subsidiary banks predominantly relates to cash and transaction account-based services.

Suspicious transaction activity includes multiple transactions (potentially without economic rationale); and large and unusual transactions and activity inconsistent with a customer’s profile.

The subsector’s large retail banking footprint enables customers to place cash directly into the financial system, and offers multiple products and services that enable fast and efficient movement of funds.

Red flags include unclear source of funds; multiple large cash transactions, particularly in a short period of time; and multiple third-party deposits.

Risk mitigation strategies

• Remain vigilant of key criminal trends in Australia
• Perform a risk assessment where a new system is introduced, or where there is a change in a system, product or service
• Tailor off-the-shelf risk assessment tools to be business specific and reflect the risks posed
• Understand the customer’s source of funds and wealth, expected account activity, ownership structure and associated and controlling parties
• Proactively detect higher-risk customers, and have elevated risk mitigation strategies for Politically Exposed Persons (PEP)
• Perform high-quality investigations for the submission of Suspicious Matter Reports (SMR) to AUSTRAC
• Provide appropriate staff training and screen employees.

How we can help

Whichever banking subsector your business falls into, our teams are across anti-money laundering and counter-terrorism financing (AML/CTF) regulations in Australia and highly experienced in conducting reviews and providing recommendations for your AML/CTF program.

Reach out to our experts for:

• an obligation free discussion regarding your current program
• an AML/CTF gap analysis
• a full review of your AML/CTF program, and expert recommendations.

Contributors

Laura Toscano

E ltoscano@sw-au.com

Sean Wong

E sewong@sw-au.com

The post AUSTRAC assesses Money Laundering and Terrorism Financing risks for the Australian banking sector appeared first on SW Accountants & Advisors.

On 1 July 2021 wage theft became a crime in Victoria and it is expected that other states will follow. 

The Wage Theft Bill 2020 creates new employee entitlement offences, comprising wage theft offences and new record keeping offences. It is designed to capture employers who falsify or fail to keep records for the purposes of concealing wage theft.

The key objective of the Bill is to ensure that employers who withhold employee entitlements dishonestly are held to account and protect vulnerable employees from exploitation.

The new law states that employers who dishonestly withhold wages, superannuation or other employee entitlements could be fined up to $198,264 for individuals, $991,320 for companies and be sentenced to up to 10 years’ jail.

Directors of companies / Council members have a legal responsibility to ensure the company meets its Pay As You Go (PAYG) withholding and Superannuation Guarantee Charge (SGC) obligations. If the company does not meet these obligations, Directors / Council members may become personally liable for a penalty equal to these amounts.

Payroll health check

In light of these new laws and given the number of organisations that have been publicly identified to have underpaid employees we urge all businesses to undertake a payroll health check. The health check will ensure that all entitlements, including superannuation, are accurately determined and paid in compliance with the current ATO requirements to avoid any penalties.

• Underpayments to casual and permanent staff for ordinary pay, overtime and leave loading
• Inconsistencies and incorrect interpretation and payment of payroll entitlements under various Awards
• Underpayment of Superannuation entitlements.

What is the impact?

Financial risks

• Underpayment to employees
• Payroll tax underpayment
• Superannuation underpayment
• WorkCover underpayment
• Annual leave loading underpayment
• Penalties arising from underpayments

Reputation risks

• Staff morale
• Community expectations
• Adverse media attention
• Criminal prosecution

Opportunity

• Self report to avoid potential financial and/or criminal actions
• Meet your social and legal obligations to act in the best interests of your employees
• Be able to potentially claim a corporate tax deduction for the payment of underpaid superannuation
• Receive a reduction of potential penalties that can be up to 200% of the total underpaid superannuation.

Action required – how we can help

1. Review current payroll processes to ascertain compliance with the relevant awards, enterprise agreements and identify if there are any underpayments.
2. Through the use of data analytics, quantify the underpayment in addition to the superannuation, annual leave, WorkCover and leave loading liabilities within the required timeframes.
3. Review historical superannuation guarantee payments to ensure that any shortfalls are rectified.
4. Check that payroll codes are correctly categorised as ordinary times earnings and any awards applied correctly to ensure that employers are meeting their payroll obligations going forward to avoid penalties.
5. Maintain auditable records for any external review.
6. Liaise with legal advisors re ramifications of underpayments on tax and superannuation liabilities and any provisions required.
7. Work with you to identify root causes of the issues, implement required process changes and identification of all costs requiring quantification.
8. Work with you to disclose any underreporting of payroll costs to the ATO.

Changes to treatment of casualised workforce

Employers are required to review and reassess their contracts for all casual employees.

Following the landmark decision handed down by the High Court of Australia in the Workpac Pty Ltd v Rossato case and statutory changes to the Fair Work Act 2009 (FWA) in March 2021 with retrospective effect, employers are required to review and reassess their casual labour contracts. Particularly where there is regular and systematic work provided and the employee’s contract has a commitment to future work.

Leave entitlements can be a minefield for employers, especially when relating to casual employees. To help you understand the potential risks and obligations, please read our alert and FAQs.

Get in touch

Through the use of sophisticated data analytics and a review of your current awards, enterprise agreements and payroll processes, SW can assist you to manage your organisation’s payroll and superannuation risks efficiently, as well as identifying potential savings opportunities.

We use our customised data analytics tool to review your payroll records to identify any shortfalls or disclosure concerns.

Rest assured that whilst the Government’s social distancing guidelines are in force, we are able to assist you remotely during this period and are able to provide the full benefits of these services.

Reach out to one of our SW experts below to discuss how we can support you.

 Contacts

Stephen O’Flynn

E soflynn@sw-au.com

Laura Toscano

E ltoscano@sw-au.com

Justin Batticciotto

E jbatticciotto@sw-au.com

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